600 LIRR Retirees Lose Disability Benefits in Fraud Scheme

John Mitty Wednesday, July 3, 2013

A U.S.federal agency has been investigating a fraud scheme on Long Island, and as per the results of the investigation (which is still ongoing), the agency will be cutting benefits for some 600 recipients.  According to investigators, more than a decade ago, the United States Railroad Retirement Board agreed to grant hundreds of Long Island Rail Road retirees benefits without sufficient evidence that benefits were warranted.  The total cost of these benefits has been adding up to $2 million per month.

24 people have been indicted over the past couple of years in the investigation, including two doctors and two facilitators, along with a number of retirees.  Dr. Peter J. Ajemian admitted in January that the retirees granted the benefits based on his falsified evidence were in fact not disabled at all.  He has been sentenced to serve eight years in prison.  Retirees will not only lose their benefits, but may also be required to pay back the money they have taken.  Their pensions however will not be removed; the railroad has however agreed to reduce the amounts of the pensions by 15%, which could save taxpayers 1.12 million over the lifetime of the retirees.

 

jmitty@longislandyellowpages.com

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